Brewers Association 2025 Midyear Report: Headwinds Persist, but So Do Successes

From the Brewers Association:

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Despite declines in volume and operating breweries, nearly half of respondents reported production growth—especially among small on-site models

The Brewers Association (BA) today released insights from its midyear survey, offering a perspective on the state of the craft beer industry and providing members with the most up-to-date data.

With closings continuing to outpace openings, the number of craft breweries operating in June 2025 (9,269) was down 1% from the number operating in June 2024 (9,352). By business type, the smaller distribution-focused microbreweries experienced the largest drop-off at -3%, followed by taprooms at -1%, and brewpubs and regional breweries with no change year-over-year.

This decline in the number of breweries is accompanied by a somewhat larger drop in volume produced as well. The Brewers Association estimates craft volume down 5% year-over-year compared to 2024. Although the sample in the survey outperformed this estimate, the result represents an adjustment for response bias and triangulation with other supporting data.

Unlike a year ago when there wasn’t much variation between business models, the on-site models in 2025 (i.e. taprooms and brewpubs) have slightly outperformed distribution models (i.e. microbreweries and regionals) by 1-2 percentage points in the first half of 2025. There were negligible changes in channel share, without much motion among distributed draught, distributed package, or onsite sales.

Wider Beverage Alcohol Struggles
Scan data tracks with Brewers Association survey results, with Nielsen IQ showing BA-defined craft down 4.1% in volume for the first half of 2025, a hair better than beer overall (-4.2%). Retailer and wholesaler rationalization, increased competition for limited shelf space, and consumers becoming tighter with their proverbial pocketbooks are all contributing to craft contraction in the off-premise channel where the bulk of beer is sold. This bears out as well in the Beer Purchasers Index where craft has remained in contraction territory for over three consecutive years.
This decline in beer volume occurs in a difficult moment across the beverage alcohol universe. Per Wine & Spirits Wholesalers of America SipSource data, spirits volume was down 4.2% over the 12 months ending May 2025, while wine was down 7.7% for the same period.

Overall, the results of this midyear survey indicate that for many breweries, the challenges they’ve faced over the past few years have either continued or accelerated. Some breweries that found marginal growth in 2024 experienced slight decreases in the first six months of this year.

Green Shoots
There are still plenty of signs of life in the industry: 49% of survey respondents reported growth while 47% reported a decline in production (the rest stayed flat). Many of the growth stories came from some of the smallest taprooms and brewpubs. That two-point spread becomes seven points (50% growth, 43% decline) for breweries producing less than 1,000 barrels annually. Although taprooms and brewpubs make up just a small percentage of the overall volume in the industry (15% in 2024), they represent an outsized 73% of craft businesses.

On the consumer side, there are more craft beer drinkers than ever before. Per 2024 data from Scarborough, 9.8% of legal drinking age adults consumed craft beer in the past 30 days, up from 6.6% in 2013. Frequency of consumption has been on the decline, but the reach of craft has never been greater.

It’s worth mentioning too that many brewers have expanded beyond beer production, the volume of which is not captured in the midyear survey. Swapping some beer production for other products has been a way for brewers to diversify their revenue by meeting the needs of their ever-evolving consumers.

Written ByMatt Gacioch , Staff Economist
 
Matt Gacioch (he/him), staff economist for the Brewers Association, helps members make sense of the data that enable their businesses to thrive. He brings experience from market analytics, brewery operations, and consulting, along with an MBA, MS, and BS from the University of Michigan. Follow him on Instagram @craft_econ

About The Brewers Association:

Who We Are
Our Purpose: To promote and protect American craft brewers, their beers, and the community of brewing enthusiasts.
The Brewers Association is a 501(c)(6) not-for-profit trade association representing America’s more than 9,500 breweries. The association is an organization of brewers, for brewers and by brewers.More than 5,600 U.S. professional member are joined by members of the allied trade, beer wholesalers, retailers, individuals, other associate members and the Brewers Association staff to make up the Brewers Association.

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The Brewers Association believes craft brewers deserve a level playing field. The association advocates for you in Washington, D.C., and backs state guilds in all 50 states to ensure that your brewery gets a fair shake.

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It matters. With the independent craft brewer seal and supporting initiatives, the Brewers Association brings clarity and transparency to the marketplace, and drives beer drinker awareness of—and preference for—independent beer.

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Brewing great beer is just one element of running a successful brewery. The Brewers Association provides best-practice guidance around safety, diversity, sustainability, and more in the Resource Hub to strengthen your business and ensure its long-term health.

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The craft brewing community is famous for its collegial nature. The Brewers Association works to build on this cooperative spirit by bringing people together at events like the Craft Brewers Conference^® and sharing best practices through The New Brewer^®, the BA Forum, and other publications.

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Quality ingredients and materials are essential to your livelihood. The Brewers Association invests in scientific research, nurtures relationships with key agricultural partners, and supports policies that ensure access to healthy and sustainable raw materials.

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The pursuit of quality is an integral part of 10,000 years of brewing history. We support this tradition by providing educational resources that help brewers refine their craft and deliver consistently delicious beer to their fans.

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From our home offices in Boulder, Colorado, to every corner of the country, the Brewers Association’s reach is wide. Our members are our greatest strength, and together we continue to strengthen and build the community of craft brewers in the greatest country for beer in the world.


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